What's Wrong With General Electric Company's Core Business?
Power is General Electric Company's (NYSE: GE) core strength, and its gas turbines are usually seen as its single most important product. As such, it's concerning that the power segment is the main source of the company's recent troubles. In my view, if you're considering an investment in GE's stock, then you need to know what's going on with its power segment. So here's the lowdown on GE Power.
The segment was front and center among GE's issues during the third quarter, and it was the main cause of management's slashing full-year earnings guidance from an operating EPS range of $1.60-$1.70 down to $1.05-$1.10, Similarly, guidance for full-year cash flow from operating activities (CFOA) dropped from a range of $12 billion-$14 billion to just $7 billion.
General Electric Company's heavy duty H-class turbine has been a success, but its smaller turbine sales have been weak. Image source: General Electric Company
Source: Fool.com